- By: Aitemad Ahmad Khan
Located on the shores of Balochistan, Gwadar has become a crucial center for trade and connectivity. It is located next to the strait of Hormuz and is significantly situated at the entrance of the Persian Gulf. The seaport has a vital connection between: Middle East, Central Asia and South Asia, serving around 30 countries. The port plays an important role in the China Pakistan Economic Corridor (CPEC) and is linked to the Maritime Silk Road (MSR). This profound seaport is crucial not only for Developing Economy of Pakistan but also for the wider regional connectivity and development
The port city is of extremely strategic importance because it provides direct access for Afghanistan and other landlocked Central Asian Republics. Strategically located at the intersection of major global ocean routes, it provides the most direct maritime access to landlocked countries in Central Asia and connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. This makes the city an ideal hub for regional trade activities. The region’s proximity to the Strait of Hormuz, a critical route for transporting and monitoring approximately 35% of the world’s oil supply, under the jurisdiction of the Oil and Sea Lines of Communication (SLOCs) that connects the whole Asian continent. Gwadar’s strategic importance is enhanced by its trade routes, which has become a vital hub in the regional logistics network, boosting trade between the East and the West.
During January to September 2023, on average 20.5 million barrels per day of crude oil, condensate, and oil products transited through Hormuz (Vortexa). Gwadar has potential that extends beyond Pakistan borders. Gwadar provides economically and a convenient gateway to the Arabian Sea for the Central Asian Republics (CARs). This connectivity will facilitate the exports of natural resources from Central Asia, including oil, gas, and minerals to global markets.
Gwadar port foundation is a crucial component of the CPEC, a massive infrastructure project aimed at improve connectivity between China and Pakistan while also reviving economic growth in the region. The project includes construction of road, rail, and pipeline infrastructure connecting Gwadar to China’s Xinjiang province. This integration reduces the time and cost of transporting Chinese products to global markets.
Gwadar serves as the most direct and cost-effective entry or exit point for Afghanistan to access the Indian Ocean. Gwadar is the sole viable choice for a landlocked and progressing nation such as Afghanistan to gain entry to temperate maritime regions. The United States prefers that its commercial and trade routes be conducted through Pakistan rather than Iran. Afghanistan will have the chance to engage in both exports and imports, as well as access relevant facilities such as ports, warehousing services, and transit conveniences, among other benefits.
Essentially, the deep seaport is a groundbreaking project eventually the potential to transform regional connections and commerce. Because of CPEC’s ambitious infrastructure projects and strategic location, the Gateway is expected to have a significant impact on Pakistan and the surrounding economies. Gwadar has the potential to accelerate long term sustainable growth, promote economic integration, and strengthen trade ties not only between the Asian continent and other global regions. To completely maximize the port’s capacity as a hub for trade and connectivity, logistical and security challenges must be addressed.
- The author is a Master of Science scholar at the Institute of Management Sciences Peshawar.
- They can be contacted at aitemadahmad10@gmail.com.